JSW Cement has officially launched its much-anticipated ₹3,600 crore initial public offering (IPO), which includes a fresh issue of ₹1,600 crore and an offer-for-sale (OFS) of ₹2,000 crore. The IPO is priced in the range of ₹139–₹147 per share, and early grey market activity indicates a modest 3% premium, suggesting subdued listing day enthusiasm.
Key Highlights:
- Industry Leadership: JSW Cement is India’s largest producer of Ground Granulated Blast Furnace Slag (GGBS), commanding a dominant 84% market share in the segment.
- Green Focus: The company positions itself as a leader in sustainable cement manufacturing, boasting the lowest CO₂ emission intensity among domestic peers.
Financial Snapshot:
- FY25 Performance: JSW Cement reported a net loss of ₹164 crore in FY25, a sharp turnaround from a ₹62 crore profit in FY24.
- Revenue Decline: Total revenue fell to ₹5,813 crore, while EBITDA margin slipped to 13.78%, down from 16.94% in the previous fiscal.
Valuation & Use of Proceeds:
- The IPO is valued at 32x EV/EBITDA and 6x price-to-book (P/B)—significantly higher than industry leaders, signaling a valuation premium.
- Proceeds from the issue will be used to:
- Set up a new greenfield cement facility in Rajasthan,
- Repay existing debt, and
- Support general corporate purposes.
Market Sentiment:
While the company has a strong market presence and sustainability credentials, its recent financial downturn and premium valuation have dampened initial investor enthusiasm. The 3% grey market premium (GMP) reflects cautious optimism but does not point to a blockbuster debut.
Bottom Line:
JSW Cement’s IPO offers a compelling green growth narrative, but investors must weigh valuation risks and profitability concerns. With sector-wide demand recovery on the horizon, the offering could attract long-term ESG-focused investors—but near-term market reaction remains uncertain.
